Lower corporate contribution hits total tax revenue

By Amy Su  /  Staff reporter

Wed, Jun 12, 2013 - Page 14

The nation’s tax revenue decreased by 3.7 percent from a year earlier to NT$293.8 billion (US$9.74 billion) last month mainly due to lower revenue from the business income tax, the Ministry of Finance said yesterday.

Accumulated tax revenue in the first five months increased 0.5 percent year-on-year to NT$706.8 billion, accounting for 98.8 percent of the revenue target for the period, the ministry said.

“We maintain a cautious view on tax revenue this year,” Hsu Ray-lin (許瑞琳), deputy director of the ministry’s statistics department, told a press conference.

The ministry has targeted collecting up to NT$1.8637 trillion in tax revenue this year, up 3.7 percent — or NT$67 billion — from NT$1.7967 trillion last year.

The latest tax data show revenue from the securities transaction tax in the first five months of the year was at its lowest level since 2005 amid sluggish trading on the local bourse — one of the major factors behind the lower-than-expected tax revenue during the period.

The ministry’s monthly report showed that revenue from the securities transaction tax fell by 16.8 percent to NT$27.6 billion in the first five months compared with last year, the report said.

It would be “highly challenging” for revenue from the securities transaction tax to reach the ministry’s target of NT$96.4 billion, Hsu said.

Revenue from the business tax also showed a 12.5 percent decline year-on-year to NT$89.8 billion, the report said.

However, revenue from land value increment tax totaled NT$41.6 billion in the first five months, up 31.6 percent from a year earlier, an indication that speculative capital remains in the property market, Hsu said.